Demand For Vitafusion, L’il Critters Gummy Lines Exceeds Church & Dwight Capacity, Drive Q3 Growth
Church & Dwight reports strong consumption of its Vitafusion and L’il Critters vitamins drove personal care product division sales up 24.5% and prompted it to use contract manufacturing to meet demand. The firm also adjusted its net sales outlook for the year to 11% and its EPS to $2.79-$2.81.
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Gummy manufacturing challenges include stability of “decaying” active ingredients, loading all ingredients into limited space and inadequate testing, says Church & Dwight scientist Kristen Farr.
C&D said sales of its brands including vitafusion, L’il Critters and PB8 supplements, Arm & Hammer, Aim and Close-Up toothpastes and Waterpick and Spinbrush power toothbrushes helped drive 8.8% growth to $386.4m for the personal and health care categories.
Church & Dwight invests in two manufacturing plants to increase production of its vitafusion and L’il Critters gummies after COVID-19-related stockpiling clears many customers' inventories. Demand for the products and nasal hygiene helped drive 10.2% domestic consumer sales increase in the first quarter.